Introduction :
Blockchain technology has the potential to revolutionize the agricultural industry with the development of agritech and agritech startups paving the way towards a more sustainable and transparent food system. The use of blockchain development services in agriculture is creating a fairer and more efficient market by reducing fraudulent activities, increasing the speed of transactions, and giving farmers greater control over their crops. The size of blockchain innovations in the agricultural market is estimated to grow to $400+ million by 2023.
Blockchain technology enters the modern farm
There are several different types of blockchain technology that are being applied in the agricultural industry. These include:
Supply Chain Tracking and Traceability :
One of the most significant areas is food supply chain optimization. Blockchain can ensure that food products’ origins are traceable, fostering customer loyalty and trust in the product. Retail giants like Walmart, Unilever and Carrefour are already turning to blockchain to track food products’ places of origin, reducing the time it takes to track the origin of food from almost a week to just two seconds. By allowing retailers to quickly isolate harmful products, blockchain reduces the risk of harm to humans, helping to ensure the quality and safety of agricultural products, as well as preventing fraud and counterfeiting (especially in the field). of organic agriculture and supply chains).
Demand for organic and local products is constantly increasing, and blockchain allows consumers to verify the journey of their product, tracing it from farm to table. Blockchain also provides data on when a product was harvested and produced and who produced it, showing consumers which field their grass-fed beef was raised in a matter of seconds.
Agricultural Finance and Payments :
Blockchain technology can be used to facilitate financial transactions in the agricultural industry, such as loans, insurance, and payments. This can help improve access to finance for farmers and other stakeholders, as well as reduce the risk of fraud and corruption. Decentralized ledger technology is uniquely positioned to simplify transaction processes and level the playing field for small farmers and crop producers.
Agricultural Data Management :
Blockchain technology can be used to manage and share data in the agricultural industry, such as information on weather, soil conditions, and crop yields. This can help improve the efficiency and productivity of agriculture, as well as support decision-making and research.
Crop insurance :
Smart contracts have unique applications in the form of helping farmers insure their crops and claim damages from insurance companies. With unpredictable weather anomalies making it difficult to estimate and quickly report losses, blockchain offers a solution. Customized smart contracts trigger damage claims through changes in weather conditions, making the process easier for farmers and insurers.
Overall, there are many different ways that blockchain technology is applied in the agricultural industry, and this is an area of continued innovation and development.
Bitcoin is one of those few words besides ‘agtech’ or ‘Tesla’ or ‘iPhoneX’ that are on everyone’s lips, regardless of their profession or age. Bitcoin, as we all know, is a cryptocurrency and uses ‘Blockchain Technology’. So how can a technology that powers cryptocurrency be the next revolutionary phase in the area of agriculture?
Well, to know more about it, let’s start with the term ‘Blockchain technology’. Blockchain is a technological platform that is used as a tool to transfer different information and data, between peers without infiltration from any institution or government. The exchange is recorded in a ledger and is accessible to all members of the blockchain. Although it sounds like a privacy violation, it is in fact a security measure. Even though the transaction is openly available, the person’s details remain encrypted. Additionally, all addresses for each transaction are recorded and stored in the wallet for future reference. This address and the encryption of each transaction helps make the system secure and protected against any cyber fraud. This may seem like a financial aspect, but in general it works with a Blockchain structure that is also applied in agriculture.
Transparency in the Food Chain
The world is moving towards an era of organic and bio foods in the daily diet. But what remains a challenge is the authenticity of these products before they are marked as organic or bio. Currently, it is not easy to verify the credibility of an organic product at the consumer level. Although to overcome these problems, certification seems to be a solution, but it leads to an increase in the price of these foods, which are already at the higher end of the price and therefore becomes unviable. But, with Blokchain, the supply system from farms to wholesalers, retailers or sellers and finally to consumers, can become completely transparent and easily accessible through a mobile application.
Companies like Agriledger, FarmShare, Agridigital, and Provenance are working in the area of blockchain agriculture and helping farmers, suppliers, and consumers do business transparently. The main importance of the technology is that it tracks your food from the farm until it reaches your hands without any manipulation in between. Additionally, if food spoils during transportation, it can be traced back to the source and necessary steps can be taken to identify bottlenecks and prevent future damage to food products. This saves a lot of money and more food reaches the market, which keeps the price in check and helps maintain the supply-demand relationship.
According to the WHO, around 400,000 people worldwide die every year due to food contamination. In August 2017, several batches of eggs were affected by an insecticide fipronil, which is dangerous to health according to the WHO. Because of this, the Netherlands, Belgium and Germany were hit hard, forcing supermarkets to stop selling all eggs. Such infected foods can be sorted and removed from the shelf by tracing their origins using Blockchain development services, which saves data on all transactions across the entire supply chain.
Ways to trace provenance
There are several ways to trace the provenance of origin of food. Some of the most common methods include:
Use of barcodes or QR codes : Many food products are labeled with a barcode or a QR code that can be scanned to access information about the product, such as its origin, ingredients, and production date.
DNA Testing : DNA testing is a scientific method that can be used to identify the unique genetic characteristics of an organism, such as a plant or animal. This technology can be used to verify the authenticity and origin of food products, such as meat, fish or agricultural products.
Certification and labeling : Some food products are certified by independent organizations that verify the product’s origin, production methods, and other factors. These certifications can be indicated on the product label, allowing consumers to easily identify products that meet certain standards.
Conclusion:
In conclusion, the transparency, efficiency, and dependability of agriculture will all be improved by blockchain technology. Its applications cover important issues facing the sector, from crop insurance to financial transactions to supply chain tracking. Blockchain is going to be a major player in creating a more secure and sustainable agricultural future. It has the ability to completely transform the way we grow, distribute, and eat food.
About Jayasuriyan
Jayasuriyan is a Digital Marketing Executive. He designs marketing strategies with the intention of using high-quality content to educate and engage audiences. His specialties include social media marketing specialist, SEO, and he works closely with B2B and B2C businesses, providing digital marketing strategies that gain social media attention and increase your search engine.
